When applying for Term Insurance

If there are people in your
family who are dependent on your income, you owe it to them to protect them
from the potential loss of income in case of your death.

There are a host of Life Insurance products available of which the one that
gives the maximum protection for a given amount of annual premium is term
insurance. To learn how much cover you require (also called sum assured), you
may use our life insurance calculator

Term insurance is ideal for those people who do not wish to mix their
investment objective with a risk objective. In case the person insured survives
the entire term of the policy, no money is payable to the family of the
insured. But in case of death, the family of the insured person gets a very high sum
assured (e.g.you can get a Rs.1 crore sum insured for 25 years at just Rs. 1000 per month for somebody who is a non tobacco user and is 30 year old ). Here is detailed comparison of term plans available today.

The most important thing to take care of while applying for term insurance (or
any life insurance) policy is to disclose all personal details e.g. whether
the insured person is a smoker or not, the medical history of the insured
person, your existing and proposed life insurance
polcies, and so on. Please take time out
to fill the form yourself. This will ensure that your family does not face any
issues if they have to file a claim on the policy. Better still buy online as
online policies are normally cheaper than those available offline.

You should also consider taking a critical
illness rider on top of your base term plan wherever available. This will
ensure that you get a lump sum amount if you have the misfortune of being
stricken by any critical illness such as a paralytic stroke, organ failure,
multiple schelorosis, etc

You can also consider taking a
temperory/permanent disability rider due to an accident on top of your term
policy where available.

Keep a copy of all documents submitted to
the insurance company for your future reference.

Any promise made by the agent or even an
official of the insurance company has no value unless it is in writing or at
least on email.

So if you are basing your decision on any
such promise make sure you get it in record in some form.

Get Life Insurance Proposals

Upto 5 providers will offer you alternative proposals based on Dec 2016 premiums